Should be able to install a longer hanger, or take it to a shop and have them bend the pipe to give you clearance. The heat given off shouldn't pose a problem, what will is as the exhaust moves it will rub and where the two metals touch, and either make noise or wear a hole in the pipe.

We had the same problem with mine. My guy installed another hanger and dropped the tip. That was fine for a while, but the tip got totally mashed up on the trails, so we just had him cut it off and add a turn down behind the hitch. Works great and is higher and more out of the way. I wasn't fond of the tip sticking out anyway. Now it looks very much better. I can get some pics tomorrow if you need them.